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Tag Archives: Bakken

  • Blog
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    Why The Shale Oil “Miracle” Is Becoming A “Debacle”

    Dispelling the magical thinking behind the hype
    by Chris Martenson

    Saturday, August 26, 2017, 1:21 AM

    11

    The central point of this report is that the US is deluding itself when it comes to energy abundance (generally) and oil (specifically).

    The bottom line is this: The US shale industry resembles a fraudulent Ponzi scheme much more so than it does any kind of "miracle".

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  • Podcast

    Art Berman: The Coming Moonshot In Oil Prices

    Today's low prices mask an approaching supply crunch
    by Adam Taggart

    Sunday, July 3, 2016, 1:47 PM

    23

    In spite of the recent low prices for oil and natural gas, an energy supply crunch is looming warns geological consultant Arthur Berman.

    Berman's perspective should not be lightly dismissed: he has 37 years of experience in petroleum exploration and production with 20 of those years at Amoco (now known as BP). He has published more than 100 articles and reports on geology, technology and the petroleum industry during the past five years –more than 20 of those focused on the shale industry including the Barnett, Fayetteville, Haynesville, Bakken and Eagleford plays.

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  • Podcast

    Arthur Berman: Why The Price Of Oil Must Rise

    Why a supply shock is inevitable
    by Adam Taggart

    Sunday, January 10, 2016, 9:09 PM

    19

    Geologist Arthur Berman explains why today's low oil prices are not here to stay, something investors and consumers alike should be very aware of. The crazy-low prices we're currently experiencing are due to an oversupply created by geopolitics and (historic) easy credit, not by sustainable economics.

    And when the worm turns, we are more likely than not to experience a sudden supply shortfall, jolting prices viciously higher. This will be a situation not soon resolved, as the lag time for new production to come on-line will be much longer than the world wants.

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  • Blog
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    The Dangerous Economics of Shale Oil

    Today's lower prices will kill the shale 'miracle'
    by davefairtex

    Tuesday, December 23, 2014, 7:31 PM

    16

    For years, we've been warning here at PeakProsperity.com that the economics of the US 'shale revolution' were suspect. Namely, that they've only been made possible by the new era of 'expensive' oil (an average oil price of between $80-$100 per barrel). We've argued that many players in the shale industry simply wouldn't be able to operate profitably at lower prices.

    Well, with oil prices now suddenly sub-$60 per barrel, we're about to find out.

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  • Insider
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    The Destruction That Awaits

    The ponzi elements of the shale story start to implode
    by davefairtex

    Wednesday, December 17, 2014, 3:30 AM

    0

    Executive Summary

    • Predicting when US shale oil production will peak
    • Why these lower oil prices *must* result in substantially lower US shale production
    • How the 'shale miracle' indeed has numerous ponzi elements that are on the brink of collapsing
    • Expect a tsunami of shale bankruptcies to arrive soon

    If you have not yet read Part 1:The Dangerous Economics of Shale Oil available free to all readers, please click here to read it first.

    Predicting The Peak

    Now we expand our focus from one hypothetical producer, to one actual shale region: the Bakken, located in North Dakota. My key source of information about the Bakken region is the Department of Mineral Resources in North Dakota. Every month the Director (Lynn Helms) produces the “Director's Cut”, a just-the-facts summary of oil production in North Dakota. Yes, it really is called the Director's Cut.

    Regional data provided by EIA is smoothed and massaged and – less useful for seeing what is going on at the point of the spear. So knowing now about how all the parts of the shale operation works, we can use the Director's Cut stats to track all the stages of producing oil. We have, in order of execution:

    • drilling permits

    • rig counts

    • wells awaiting completion

    • well counts

    • monthly production

     

    In other words, before you can drill, you need …

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  • Blog
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    The Dangerous Economics of Shale Oil

    Why the recent oil price drop is so vicious to shale
    by davefairtex

    Wednesday, December 17, 2014, 2:58 AM

    0

    With the recent free-fall in the price of oil, an increasingly asked question is: What impact will these lower prices have on America's production of shale oil?

    If we just look at the income statements they file with the SEC, it's difficult to determine if the current raft of shale companies are engaged in a profitable enterprise. Intuition tells us something is probably wrong, and smart people we trust mutter about cash flow and talk about a ponzi scheme, but how can we know for sure?

    Can shale oil be profitable at all? If so, at what price? And under what conditions?

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  • Podcast

    The Shocking Data Proving Shale Oil Is Massively Over-hyped

    It's time for America to focus on the facts
    by Adam Taggart

    Sunday, December 14, 2014, 12:03 AM

    28

    Hooray, oil is suddenly much cheaper than it used to be. That's great news, right?

    Not so fast. For certain it's not good news for those counting on a continued rise in US oil production from the "shale miracle". Many drillers were challenged to operate profitably when oil was above $70 per barrel. Very few will remain solvent with oil in the $50s (as it is as of this writing).

    So, expect US oil production to suffer from these lower prices if they persist. But even if oil prices rise and rise soon, there's new data that indicates the total amount of extractable oil from America's shale plays is less — much less — than what we're being told (or better put, "sold").

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  • Blog
    Peak Prosperity

    Shale Oil – Crash Course Chapter 21

    Expensive. Over-hyped. And short-lived.
    by Adam Taggart

    Friday, November 14, 2014, 11:38 PM

    4

    If you've watch the previous video chapter on Peak Cheap Oil, you may be wondering how any of that could be still be true given all the positive recent stories about shale oil and shale gas , many of which have proclaimed that “Peak Oil is dead”.

    The only problem with this story is that it is misleading in some very important ways. And entirely false in others.

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  • Podcast

    Richard Heinberg: The Oil ‘Revolution’ Story Is Dead Wrong

    The data tell a vastly different tale than the media
    by Adam Taggart

    Sunday, March 9, 2014, 5:45 PM

    38

    With all the grandiosity of the media headlines touting our destiny as the new "Saudi America", many pundits have been quick to pronounce Peak Oil dead.

    Here at PeakProsperity.com, one of the most frequent questions we've received over the past two years is: will the increased production from new "tight" oil sources indeed solve our liquid fuels emergency?

    Not at all, say Chris and this week's podcast guest, Richard Heinberg. Both are fellows at the Post Carbon Institute, and you are about to hear one of the most important and most lucid deconstructions of the false promise of American energy independence:

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  • Insider

    Peak ‘Cheap’ Oil: Shale Oil Proves Peak Oil Is Indeed Upon Us

    We wouldn't drill for it if the cheap stuff were still here
    by Chris Martenson

    Monday, September 30, 2013, 2:40 AM

    15

    Ever the contrarian, I have been quite skeptical of the many breathless claims being made by wide swaths of the media about how a new energy bonanza is going to overtake the U.S. and eventually the world.  The subject, of course, is the new shale plays in both natural gas and oil.

    While these plays are in special cases quite extraordinary, and the technology is just brilliant, many of the more exuberant claims made in the past about the potential contributions of these plays are now being dialed back.

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